2005-09-14 CC Packet - Laserfiche WebLink

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I. Reportable Condition Segregation of Duties Our consideration of intemal control disclosed that the company has an inherent reportable condition associated with the size of its accounting f1-mction. The size of the Organization is such that optimum internal control achieved through adequate segregation of incompatible duties among accounting persOlmel is not feasible. Although the Organization has implemented policies and procedures to mitigate for the lack of segregation of duties, the Organization does not meet the criteria (as pronounced by the American Instihlte of Certified Public Accountants) for segregation of duties in its accounting function. As such, management should maintain sufficient oversight to avoid errors and irregularities. TIllS situation is conm10n to organizations of tills size and any changes should be reviewed fi'om a cost-benefit perspective. II. Required Communications We have audited the financial statements of North Metro Telecommunications . Commission for the year ended December 31, 2004 and have issued our report thereon dated April 11, 2005. Professional standards require that we provide you with the following information related to our audit. Our Responsibility Under Auditing Standards Generally Accepted in the Ulllted States of America As stated in our engagement letter dated November 22, 2004, our responsibility, as described by professional standards, is to plan and perfonn our audit to obtain reasonable, but not absolute, assurance that the financial statements are fi'ee of matellal misstatement and are fairly presented in accordance with accounting principles generally accepted in the United States of America. Because of the concept of reasonable assurance and because we did not perform a detailed examination of all transactions, there is a risk that material enol'S, fraud, or other illegal acts may exist and not be detected by us. Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by North Metro Telecommunications Commission are described in Note I to the basic financial statements. No new accounting policies were adopted and the application of existing policies was not changed by the Organization during the year ended December 31, 2004. We noted no transactions entered into by the Organization during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. P.25 _ . __I